Land O'Lakes delays Purina Mills purchase to October
Published Sep 27 2001
ST. LOUIS -- Land O'Lakes Inc. delayed its $360 million
purchase of Purina Mills Inc. until October because the Sept. 11
terrorist attacks disrupted financing for the transaction.
The deal would create the largest animal-feed maker in North
America.
'We continue to actively pursue this acquisition,' Land O'Lakes
Chief Financial Officer Daniel Knutson said in a prepared
statement. 'While the financial and credit markets have been
affected, we contemplate that this transaction will be
consummated in October.'
Land O'Lakes, the second-largest U.S. dairy co-op with sales of
$5.76 billion last year, had agreed in June to pay $23 for each
Purina Mills share, or about $230 million in cash. Land
O'Lakes, which will assume $130 million in debt, expected to
complete the transaction this month.
Purina Mills stock fell 62 cents, or 2.8 percent, to $21.50.
The acquisition would give Arden Hills-based Land O'Lakes
the capacity to manufacture and distribute 15 million to 16
million tons of livestock feed annually, or about 13 percent of
total U.S. capacity, analysts said.
Purina Mills shareholders approved the sale on Sept. 5. No
layoffs are expected at Purina Mills plants, company officials
said in June. Executives at Purina Mills' St. Louis headquarters
couldn't be reached for comment.
-- Bloomberg News
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